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New Age Beverages (NBEV) to Post Q1 Earnings: What's in Store?

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New Age Beverages Corporation (NBEV - Free Report) is slated to report first-quarter 2019 results on May 9, before market open.

For the first quarter, the Zacks Consensus Estimate is pegged at a loss of 2 cents compared with a loss of 7 cents incurred in the year-ago quarter. Notably, the estimates remained stable over the past 30 days. For quarterly revenues, the consensus mark stands at $59.6 million, indicating significant improvement from the year-ago quarter number.

Factors at Play
 
New Age Beverages is benefiting from strength in its portfolio of brands. This also includes the enhancement cannabis-infused beverage portfolio, where management believes to seizure first-mover advantage. Additionally, the company is on track to expand its core brand portfolio. The company is likely to gain from its strategic buyouts such as the Morinda acquisition. Notably, it has completed the integration of the Morinda acquisition in December last year.

Furthermore, New Age Beverages has been strengthening its foothold in the e-commerce distribution system. Presently, it annually ships above $150 million of product via this system, and intends to integrate this with New and Age. As a result, the company will expand to e-tail and other e-tail systems, enhance subscriber base and database as well as build affiliates internally and externally.

All these aforementioned growth drivers are likely to boost the company’s top and bottom line in the first quarter.

Conversely, New Age Beverages has been recovering from inventory shortfalls mainly owing to working capital issues. This adversely impacted the underlying strength of the company. This is likely to be a hindrance while capturing growth opportunities and might affect the company’s results in the quarter to be reported. Also, higher operating expenses are likely to weigh on the company’s profitability.

Zacks Model

Our proven model does not conclusively show that New Age Beverages is likely to beat estimates in the first quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Although New Age Beverages’ Zacks Rank #2 increases the predictive power of earnings beat, its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks Likely to Beat Earnings Estimates

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the upcoming releases:

WD-40 Company (WDFC - Free Report) has an Earnings ESP of +4.13% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3.

Keurig Dr Pepper (KDP - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank #3.

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